Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially as lower capital spending and higher operating cash flow boosted free cash flow. Compared to the same quarter last year, free cash flow and margin were lower due to increased capital expenditure and slightly reduced operating cash flow.
- Revenue rose from the prior quarter, and operating cash flow increased while capital expenditure declined, leading to higher free cash flow and an improved free cash flow margin. The conversion of revenue into cash strengthened sequentially.
- Relative to the immediately preceding quarter, free cash flow and margin improved markedly as operating cash flow rose and capital spending dropped. Versus the same quarter one year earlier, free cash flow and margin weakened, with capital expenditure increasing and operating cash flow slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$591.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$180.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$327.1M
Cash generated by operations before capital spending.
CapEx
$146.7M
Capital spending and related asset purchases.
FCF margin
8.3%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-12-31 | $1.9B | $335.3M | $141.1M | $194.2M | 10.0% |
| 2024-03-31 | $2.0B | $260.4M | $76.7M | $183.7M | 9.3% |
| 2024-06-30 | $2.1B | $278.3M | $245.0M | $33.3M | 1.6% |
| 2024-09-30 | $2.2B | $327.1M | $146.7M | $180.4M | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Capital Spending
Capital expenditure decreased substantially from the prior quarter, while operating cash flow increased. This combination drove a significant improvement in free cash flow and margin sequentially.
The reduction in capital spending was the dominant factor behind the sequential rise in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, and operating cash flow increased while capital expenditure declined, leading to higher free cash flow and an improved free cash flow margin. The conversion of revenue into cash strengthened sequentially.
Relative to the immediately preceding quarter, free cash flow and margin improved markedly as operating cash flow rose and capital spending dropped. Versus the same quarter one year earlier, free cash flow and margin weakened, with capital expenditure increasing and operating cash flow slightly lower.
Capital expenditure levels, which varied significantly between periods, are a key factor to monitor for future free cash flow trends.